THE ROLE OF THE INTERNATIONAL INSURANCE MARKET IN THE DEVELOPMENT OF FOREIGN

Abstract

The development of foreign economic activity is closely linked to the efficiency of risk management mechanisms in international markets. In this context, the international insurance market plays a crucial role in facilitating cross-border trade and investment by reducing uncertainty and protecting economic agents from various commercial, political, and financial risks. This study examines the role of the international insurance market in promoting foreign economic activity through risk mitigation, trade facilitation, and financial intermediation channels. The research adopts a quantitative approach using panel data to analyze the relationship between international insurance market development and foreign economic activity across countries over time. Foreign economic activity is measured using indicators such as export volume, trade openness, and foreign direct investment inflows, while international insurance market development is proxied by insurance penetration and insurance density. The empirical methodology includes descriptive statistics, cross-sectional dependency tests, panel unit root tests, and cointegration analysis to identify long-run relationships between the variables.